I.

Introduction

United States Tariffs. Throughout the history of the United States, tariffs have influenced the nation's economics and politics. Tariffs are taxes levied on imports and exports by a government.

Before the formation of the United States, customs duties were imposed by Great Britain on colonial commerce and were levied by almost all the colonial assemblies, virtually from their inception. The colonial imposts, generally duties of 1 to 5 percent, were intended to raise revenue; protect colonial trade against foreign, including British, competition; retaliate against discriminatory treatment abroad; and, in accordance with custom and prevailing religious beliefs, notably in the northern colonies, discourage the purchase of ostentatious apparel and liquor. Most colonial imposts comprised either general tariff schedules that included import duties on wine and liquors, or such specific taxes as export duties on tobacco or other agricultural products, import duties on slaves, and tonnage duties on shipping based on the weight of the cargo. See also Foreign Trade.

The Constitution of the United States empowered Congress in Article I “to lay and collect Taxes, Duties, Imposts and Excises” and “to regulate Commerce with foreign Nations.” The first enactment made by Congress was the Tariff Act of 1789, which was intended to encourage the domestic manufacture of glass, earthenware, and other products. Its primary purpose, however, was to raise revenue; it provided for an average duty rate of about 8.5 percent.